Cominsky Products, Incorporated, Has a Screen Division That Manufactures and Sells

question 130

Essay

Cominsky Products, Incorporated, has a Screen Division that manufactures and sells a number of products, including a standard screen. Data concerning that screen appear below:
The company has a Home Security Division that could use this screen in one of its products. The Home Security Division is currently purchasing 6,000 of these screens per year from an overseas supplier at a cost of $96 per screen.
Required:
Assume that the Screen Division is selling all of the screens it can produce to outside customers. What is the acceptable range, if any, for the transfer price between the two divisions?

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Definitions:

Position

The way in which someone or something is placed or arranged in relation to its surroundings.

Direction of Movement

Refers to the course along which someone or something moves, which can be described in terms of direction (such as north, south, forward, backward).

Stroke

Is a medical condition characterized by a sudden disruption of blood flow to parts of the brain, causing tissue damage and possible loss of function.

Occupational Therapy

Is a form of therapy that helps people engage in everyday activities through therapeutic use of occupation, improving their physical and mental health.